What is a Contract?
A contract constitutes a legally enforceable agreement, such as an Agreement of Sale or Deed of sale.
What is Aesthetic Value in relation to property?
Aesthetic value in property is a judgment of value based on the appearance of an object and the emotional responses it evokes. While it is difficult to objectively assess aesthetic value of a property, it often becomes an important determining factor in overall value; Properties people perceive as attractive tend to be in higher demand, and will cost more than comparable objects without the aesthetic component. For example, two homes with similar amenities, locations, and sizes can sell for radically different prices if one is a custom-designed craftsman while the other is a generic build standard home.
Judging artistic value is a complex process. Culturally, ongoing debates swirl around aesthetics in many regions of the world, and perceptions of beauty tend to be influenced by the culture a person grows up in. People in the West, for example, may value Classical design inspired by ancient Greece and Rome, while people in the East may not find this style aesthetically pleasing. Works of art are judged on aesthetic value and can have radically difference price tags on the basis of appearance and creator, even if the materials are identical.
What does Zoning stand for in Real Estate?
Zoning is the description of primary uses permitted, as well as uses permitted with consent, for a property. It is set out in the town planning scheme of a local municipality and or the scheme schedule applicable to a property. Examples of zonings include Business, Light Industrial, Residential 1 or Commercial.
What is a Zero Rated Transaction in Real Estate?
In a property deal a Transaction is Zero Rated for VAT purposes (not VAT paid or received) where the Property is defined as a Going Concern (Income Producing) and both the Purchaser and Seller are VAT vendors as at the date of transfer of the property.
For a Zero Rated Transaction the property has to be at least 50% let to tenants to qualify as a Going Concern and lease back property does not qualify as a Going Concern.
Even if seller and buyer are both registered as VAT vendors it cannot be assumed that automatically a zero rating is applicable.
What does Yield mean in a Property Investment?
A yield is the net operating income (NOI) of the first year, divided by the Price at which it was purchased. This can be used as an indicator of risk; when using the expected net operating income of the first year.
What is a Wholesale Value in the Property World?
A wholesale value in the context of property syndication refers to the estimated price that a share or shares of a syndicated property-holding company would fetch should the holding company be dissolved and the underlying property sold as a normal, non-syndicated property.
What is a Waterproofing Certificate in Real Estate?
A waterproofing certificate is a guarantee or written undertaking by a waterproofing contractor that the item on a building certified has been adequately waterproofed in terms of the instructions specified by the manufacturer.
What is a Waiver of Lien?
A waiver of lien is a legal document in which a contractor waives the common law right to hold control over a property if payment is not received in full.
How important is VAT (Value Added Tax) in a Property Transaction?
VAT is a government Tax, charged by vendors who are VAT registered, on the supply of goods or services rendered. It is currently calculated at 14% of the cost of goods supplied or services rendered, and added to the value of these good or services. With immovable property, the purchase price is deemed to include VAT if the seller is a VAT vendor. If the seller is not a VAT vendor, transfer duty is applicable at a sliding scale rate.
What is a Variable Interest Rate?
A variable interest rate is a fluctuating interest rate, as opposed to a fixed rate, that is pegged for a certain period of time. If the prime rate changed by the banks rise or drop in response to a change in the repo rate set by the Reserve Bank, the borrower’s home loan rate will rise or fall accordingly. You can protect yourself from these fluctuations in the interest rate by capping your interest rate.